Plug-in Electric Vehicles to Make 7 Percent of Light Vehicle Market by 2020

Worldwide sales of light-duty hybrid and plug-in electric vehicles will reach 6.6 million units annually in 2020, representing almost 7% of the total light-duty vehicle market, according to a new report by Navigant Research. Navigant’s prediction is based on several factors. Falling prices are driving demand for electric vehicles. The cost of battery packs, which can account for as much as half of plug-in electric vehicle costs, will continue to decrease significantly during the forecast period, according to the report. Hybrids and plug-in hybrids are anticipated to see a 10 percent and 26 percent decline in battery pack costs by 2020, respectively, while electric vehicles will likely remain flat, but see improvements in vehicle range and performance during the same period. “Electric vehicles, including plug-in models, are becoming an increasingly important part of the glo...